At the time of VE Partners’ investment, the company manufactured products such as baby wipes, personal care wipes and moist toilet tissues that are produced for brands and retail customers. The company purchased bulk non-woven materials and converts these rolls into flow-wraps of impregnated wet wipes containing typically up to 70 wipes.
Codi was acquired as a carve-out from a large producer wanting to focus on just the production of the base material used for a.o. wet wipes. At that time Codi had experienced multiple years of declining sales and was financially not performing well. VE Partners invested heavily in Codi to support its management with the execution of a buy-and-build strategy, resulting in the acquisition of its key competitor in the Benelux (Innovate), as well as with investments in its production sites to significantly improve capacity, productivity and profitability. A substantially reduced cost price and ambitious commercial approach led Codi during our holding period to win business at several new large customers in the retail/private label business and regain its position as one of the most successful European wet wipes producers.